Analysts Shift on Key Blue-Chip and Growth Names

Apple reported a strong start to fiscal 2026, with a 23% gain in iPhone sales in the first quarter ended Dec. 27, 2025, while responding to questions about its artificial intelligence roadmap. CEO Tim Cook highlighted new AI-linked features such as live translation through AirPods, multilingual AI writing and cleanup tools, and visual intelligence on iPhone, and reiterated that user privacy remains central to Apple’s AI development approach.

Cook also noted that a majority of users on enabled iPhones are actively using Apple Intelligence. At the same time, Apple is adjusting its broader ecosystem strategy: it is shifting Apple Card issuing from Goldman Sachs to JPMorgan Chase, opening CarPlay to third-party AI chatbots, and scaling back a standalone AI health coach project in favor of integrating health features into existing apps.

Qualcomm, by contrast, faces near-term pressure from a severe DRAM shortage driven by AI data center demand and capacity shifts toward high-bandwidth memory. The company forecast a decline in second-quarter revenue despite a 5% year-over-year increase in first-quarter 2026 revenue, citing constrained memory availability for handsets and cautious chipset inventory management by smartphone OEMs, particularly in China.

Qualcomm CEO Cristiano Amon said the smartphone market will likely be hit hardest by the memory shortage, though he expects premium and high-tier devices to prove more resilient, as seen during the pandemic. Beyond handsets, Qualcomm is leaning further into diversification, investing in data centers, RISC-V CPUs, automotive partnerships, and AI, IoT, and robotics products.

In the energy sector, SLB secured a $1.5 billion, five-year contract from Kuwait Oil Company to design, develop and manage production at the Mutriba field, adding to a five-year unconventional gas services contract with Saudi Aramco signed in December. Jefferies and UBS both raised their price targets on SLB in early February while maintaining Buy ratings, citing what Jefferies called a valuation that is “not challenging.”

ConocoPhillips drew attention with a $1 billion cost-cutting plan for 2026. Following fourth-quarter results that missed profit estimates on weaker crude prices, the company reaffirmed 2026 capital expenditures of around $12 billion and adjusted operating costs of $10.2 billion, and aims to cut combined capital and operating costs by $1 billion in that year. CEO Ryan Lance linked the program to more than $1 billion in run-rate synergies from the $22.5 billion Marathon Oil acquisition, and reiterated plans to return 45% of cash from operations to shareholders.

Among midstream and utility names, The Williams Companies received price target increases from Jefferies and Mizuho. Both firms expect medium-term adjusted EBITDA growth guidance of 8% to 10% annually through 2030, supported by over $5 billion in announced Power Innovation projects and ongoing efforts to leverage existing gas transmission infrastructure, including behind-the-meter power generation initiatives.

Edison International and Public Service Enterprise Group continued to attract mixed but generally constructive views. Analysts cited ongoing grid modernization, regulatory dynamics and dividend profiles, with some firms maintaining Hold or sector-perform stances while highlighting the role of these utilities in long-term energy transition and reliability planning.

Large U.S. banks saw fresh rating actions following robust fourth-quarter reports. Baird upgraded JPMorgan Chase to Neutral from Underperform with a $280 price target, pointing to the bank’s “enviable capital position” and strong Q4 2025 results, while cautioning that the stock’s valuation, near 3 times tangible book value, leaves limited room for disappointment. TD Cowen reiterated a Buy rating and $400 target after JPMorgan’s earnings, describing post-earnings share weakness as “unwarranted” given what it viewed as a constructive backdrop for investment banking and loan growth in 2026.

Bank of America maintained its dividend at $0.28 per share for the first quarter of 2026, matching the level in place since a July 2024 increase. TD Cowen trimmed its price target on the stock to $64 from $66 but kept a Buy rating after Bank of America’s Q4 2025 earnings beat, noting that the upside came mainly from lower provisions and slightly higher net interest income, even as management guided to operating leverage at the low end of its 200 to 300 basis point target range.

In consumer and retail, Lululemon Athletica remained in focus. BTIG reiterated a Buy rating and a $303 price target, emphasizing the company’s execution strategy over near-term product launches. Analyst Janine Stichter pointed to a disjointed launch of the new “Get Low” performance fabric, softness in North America partly tied to limited product newness, and early positive shifts in merchandising, including a refined color palette and less logo-centric designs.

Best Buy, by contrast, faced more cautious commentary. JPMorgan downgraded the stock to Neutral from Overweight with a $76 price target, citing headwinds in computing from rising memory prices, housing-related weakness in TVs and appliances, and tough year-on-year comparisons that could limit upside even if consumer stimulus provides a short-term lift.

Several major healthcare names reported or were the subject of detailed analyst updates. Abbott Laboratories continued to work through a Class I recall of certain FreeStyle Libre 3 glucose monitoring sensors, with serious injury reports rising to 860 as of early January, according to FDA data cited by Reuters. Abbott traced the issue to a single production line and said it had been resolved. UBS reiterated a Buy rating and set a $158 price target, pointing to 2026 EPS guidance of $5.55 to $5.80 and expectations for a return to high single-digit organic growth, supported by electrophysiology reacceleration and new product launches such as the Volt Pulsed Field Ablation System.

Novo Nordisk warned on Feb. 4 that “unprecedented” pricing pressure would cause sales and profits to fall for the first time in years as payers demand deeper discounts on weight-loss drug Wegovy and related diabetes treatments amid intensifying GLP-1 competition. The company also reported that the U.S. Food and Drug Administration approved tablet formulations of Ozempic in three doses for adults with type 2 diabetes, with a supplemental application for a higher dose under review. A day later, Novo Nordisk said it would pursue legal and regulatory action against Hims & Hers over plans to sell compounded Wegovy at $49 per month, arguing that mass compounding threatens patient safety and infringes its intellectual property.

Sanofi posted strong fourth-quarter 2025 results led by a 32.2% surge in sales of asthma drug Dupixent to €4.2 billion, offsetting a 2.5% decline in vaccine revenue. Adjusted EPS came in at €1.53, and revenue rose to €11.3 billion, both ahead of forecasts. CEO Paul Hudson said he expects profitable growth to continue for at least five years as Sanofi invests in research and development to build a pipeline that can eventually supplement Dupixent’s contribution. The company reaffirmed plans for a €1 billion share buyback in 2026.

Elsewhere in healthcare, Innovent Biologics announced its seventh collaboration with Eli Lilly, under which Innovent will lead early development of novel oncology and immunology programs in China through Phase 2, and Lilly will hold exclusive rights outside Greater China. Innovent will receive a $350 million upfront payment and could earn up to $8.5 billion in milestones plus tiered royalties on ex-China sales.